HB434 Summary

• Amends Section 40-27-1 of Alabama Code to adopt and enact the Multistate Tax Compact, which facilitates proper determination of state and local tax liability for multistate taxpayers.

• Changes sourcing rules for sales of non-tangible personal property so a sale is considered to occur in Alabama if the taxpayer's market for the sale is located in Alabama.

• Increases the weight of the sales factor in business income apportionment by changing the denominator from three to four, giving the sales factor double weight relative to property and payroll factors.

• Establishes the Multistate Tax Commission to study state and local tax systems, develop uniform tax regulations and forms, conduct interstate audits, and arbitrate apportionment disputes between states and taxpayers.

• Effective for all taxable years beginning on or after December 31, 2010.